The demand for property in Spain continues to thrive among international buyers, but a new trend is emerging in 2025: German citizens are now the leading foreign nationality requesting a mortgage in Spain. This shift reflects broader changes in buyer profiles, preferred locations, and financing behaviors across Europe and beyond.
At the same time, buyers from the United Kingdom and the United States remain among the top applicants, and their behavior reveals key insights for anyone—especially Americans and British nationals—considering a home purchase in Spain.
Who’s Requesting the Most Mortgages in Spain?
According to data from idealista/hipotecas, German nationals accounted for 16.6% of all foreign mortgage applications in Spain during the first quarter of 2025. They are followed by British buyers at 14.2%, and Americans rank fourth at 7.7%—just behind the Swiss (8.7%).
Here’s the full breakdown of the top 10 nationalities applying for mortgages:
| Country | Share of Foreign Mortgage Demand |
|---|---|
| Germany | 16.6% |
| United Kingdom | 14.2% |
| Switzerland | 8.7% |
| United States | 7.7% |
| France | 7.5% |
| Netherlands | 6.9% |
| Ireland | 4.4% |
| Belgium | 4.0% |
| Italy | 2.0% |
| Sweden | 1.9% |
British and American buyers have consistently ranked among the top five for the past several years, with U.S. demand slowly increasing due to the strength of the dollar and growing expat interest in Spanish coastal living.
Why Are Germans So Active in the Mortgage Market?
Germans have long been active in Spain’s housing market, especially in coastal regions. However, several factors explain their rise to the top of the mortgage in Spain rankings:
- Affordability: German buyers tend to purchase more modestly priced homes and request relatively lower loan amounts (average of €148,946).
- Preference for Fixed Rates: Like most international buyers, Germans overwhelmingly prefer fixed-rate mortgages, providing certainty in financial planning.
- Younger Profile: The average age of German applicants is 40, slightly younger than some other European buyers.
Interestingly, British and American applicants request larger mortgages than Germans. The average loan amount for a British buyer is €170,759, and for an American it’s €204,168—the highest of any nationality.
How Much Do Foreigners Typically Borrow?
On average, foreign nationals requested €180,601 in mortgage financing in Q1 2025. However, there are substantial differences by nationality:
- United States: €204,168
- Switzerland: €200,779
- United Kingdom: €170,759
- Germany: €148,946
- Italy: €142,423
American buyers typically target higher-end properties and are more likely to be seeking holiday homes or long-term relocation, particularly in sunbelt regions like Costa del Sol or the Balearic Islands.
What Are the Average Incomes of Foreign Mortgage Applicants?
The average monthly income of foreign applicants for a mortgage in Spain is €6,572, nearly double that of Spanish citizens (€3,379). Americans and Swiss applicants stand out with the highest incomes:
- United States: €9,292/month
- Switzerland: €9,034/month
- United Kingdom: €6,013/month
- Germany: €5,730/month
This income level positions Americans as some of the strongest borrowers, often qualifying for premium mortgages with favorable terms. British buyers also remain competitive in terms of financial profile despite currency fluctuations post-Brexit.
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Get StartedWhich Areas of Spain Are Most Popular Among Foreign Buyers?
The coastal regions remain the top choice for foreign buyers, with the following areas receiving the most mortgage applications:
- Valencia: 26.8%
- Andalusia: 21.1%
- Catalonia: 14.5%
- Madrid and Canary Islands: also popular
- Balearic Islands and Murcia: gaining traction
These destinations are particularly attractive to British and American buyers, who often seek second homes or future retirement properties in beachside towns, rural fincas, or vibrant cultural centers like Barcelona or Málaga.
What Types of Mortgages Are Foreigners Choosing?
The preferred mortgage structure among all buyers in Spain—foreign and domestic—is the fixed-rate loan. Among international applicants:
- 84% choose fixed-rate mortgages
- 12% opt for mixed mortgages
- 4% select variable-rate loans
This reflects a common desire for financial predictability, especially among British and American buyers accustomed to fixed-rate lending in their home countries.
What Happens After Approval: Are Actual Mortgage Amounts Higher?
Yes. While the average requested mortgage stood at €180,601, the average amount finalized for successful foreign applicants reached €204,243. This shows that those who proceed to formalize a loan often have stronger financial profiles or adjust their property expectations.
Income levels for those who finalize a mortgage also increased, averaging €10,900/month—with Americans frequently topping this group. The average purchase price of the properties financed reached €350,000, another record-high.
Frequently Asked Questions About Getting a Mortgage in Spain
Can foreigners get a mortgage in Spain?
Yes. Spanish banks offer mortgages to both residents and non-residents. Most non-residents must provide proof of income, creditworthiness, and make a down payment of at least 20–30%.
How much can I borrow as a foreigner?
Non-residents can typically borrow up to 70% of the property’s purchase price, though residents may secure financing of up to 80–90%.
Is a fixed-rate or variable mortgage better?
Fixed-rate mortgages are preferred in 2025, especially for long-term planning and stable budgeting—making them ideal for American and British buyers.
Are there additional taxes for foreign homeowners?
Yes. Foreign owners are subject to property tax (IBI), non-resident income tax, and possibly capital gains tax upon resale. Consult a tax advisor familiar with Spanish law and your country of origin.
How long does the process take?
The mortgage approval process in Spain typically takes between 6 to 8 weeks, provided all required documents are submitted on time. To streamline the experience, experienced mortgage brokers strongly advise starting the pre-approval process before beginning your property search. This way, when buyers find the right home, they are financially prepared and less likely to face delays or complications securing the mortgage.
Conclusion: What This Means for Foreign Buyers in 2025
Whether you’re German, British, or American, the opportunity to secure a mortgage in Spain remains strong. The country offers financial products tailored to international buyers, attractive interest rates, and broad property options—from coastal homes to city apartments.
Germans may lead the demand, but Americans and Brits continue to shape the market with their higher incomes, larger mortgage amounts, and growing presence in popular regions.
If you’re considering a move to Spain or investing in property, understanding the mortgage landscape is key. With stable financing options and sustained demand, 2025 could be the right time to make your Spanish dream a reality.
